Demand Response

Recent calls for Maryland to revert from a competitive electricity market to a monopoly system may be good-intentioned, but they are quite misguided. Innovation has replaced the inefficiencies of the old monopoly system, giving customers new choices, competitive prices and an efficient, reliable power supply.
 

New Jersey Governor Chris Christie and the state legislature are considering a proposal that will add a new charge to consumer energy bills and threaten thousands of jobs. The implications of this legislation are simple: higher energy bills for consumers and the very real threat of layoffs by companies that will no longer be able to afford operating costs.

Competitive electricity markets will stimulate plug-in hybrid-electric vehicle (PHEV) technology, facilitate integration of PHEVs with the power grid, and unlock consumer benefits. This message emerged during a conference sponsored by COMPETE and the University of Illinois-Springfield that explored the future of plug-in hybrid electric vehicles and the smart grid.

The COMPETE Coalition will sponsor a day-long conference October 5th to discuss the opportunities and challenges facing national electric vehicle deployment, grid modernization and how they tie into America’s Smart Grid future.
 
The free conference – Electric Vehicle Technology and Grid Modernization: How PHEVs and Smart Grid Come Together – takes place at the Phoenix Park Hotel in Washington, D.C., and is co-sponsored by the Center for Business and Regulation, College of Business and Management, University of Illinois-Springfield.
 

The New York Independent System Operator (NYISO) credited competitive markets with reducing air pollution by attracting investment in power plant efficiency and clean energy sources, according to a report in Restructuring Today and Platts Electric Power Daily.
 
Stephen Whitely, NYISO’s CEO, stated that competition has combined with carbon control programs like the Regional Greenhouse Gas Initiative (RGGI) to sharply lower emissions of sulfur dioxide, nitrogen oxides and carbon dioxide.

“Competition in wholesale electricity markets has stimulated investments in cleaner generation, increased the use of renewable resources – such as wind power – and encouraged operating changes to improve the overall efficiency of power plants,” said Whitely. 

A new staff report from Arizona Corporation Commission (ACC) urges a full evaluation of the state’s electricity market given the benefits competition could offer the state’s consumers, economy and environment. The report, issued last week, comes as the ACC considers revising state rules to introduce competition to its power market.
 
Competition would create multiple economic benefits for Arizona consumers, according to ACC staff:
 

A combination of hotter summers, an aging electrical grid and uneven adoption of smart grid technology has increased the need for electric infrastructure investment, according to a University of Minnesota research study cited by CNN reporter Thom Patterson.
 
COMPETE agrees significant investment is needed in our national grid to reach our nation’s sustainable energy goals and maintain electric reliability needs. But CNN missed an important opportunity to highlight how competitive electricity markets are helping ensure reliability and encourage innovation and investment while protecting consumers from the financial risk of poor or failed investment decisions.
 

Competition is helping the nation’s organized markets weather this summer’s peak electricity demands as heat waves gripped much of the country. Both private investment and innovative demand response technology, two of the most distinct benefits of competitive markets supported by the transparent price signals markets provide, have kept the lights on in spite new power-demand records.
 

Competitive electricity markets are helping lead the nation toward a smart grid future. So says a new report from GTM Research, which ranks the top 10 states leading smart grid implementation. Seven of the 10 states participate in competitive electricity markets. California ranks first, followed in the rankings by Massachusetts, New Jersey, New York, Ohio, Pennsylvania and Texas.
 
These state rankings result from a mix of effective regulatory oversight and private investment, but all deliver economic and environmental benefits to consumers. “These 10 states are the laboratories for U.S. smart grid policy, and their influence on the pace and scope of deployment is durable and growing,” said Stephen Munro, energy policy analyst for GTM Research.
 

Smart grid technology is creating economic and environmental benefits, but must reach all consumers and enable intuitive energy use decisions to truly achieve its potential. This message was the focus of a recent panel discussion on consumer perspectives during a smart grid policy conference at the Brookings Institution.